The US NDAQ 100 index continued its breakdown, selling off for a second straight day. This slide has broadened out to other indices including the Japan 225 and Hong Kong 50. The UK election result continues to take its toll on Sterling with GBP selling off against USD and JPY. CAD had a good day, rallying in the afternoon with USDCAD taking out $%1.3400 and CADUSD bumping up against $0.7500.
Asia Pacific Indices
Australia 200 remains in a downtrend with the index unable to retake 5,700 setting another lower high, and the RSI still under 50 and trending downward. Trading near 5,675, initial support appears between 5,600 and 5,625 where a recent low, Fibonacci test and the 200-day average cluster.
Japan 225 continues to fall away from 20,000 taking out 19,900 and dropping toward 19,820 with next potential support near 19,755 then 19,455 23% and 38% retracements of the recent upleg. RSI testing 50 where a breakdown would confirm a downturn in momentum.
Hong Kong 50 is breaking down today, taking out 26,000 and dropping toward 25,760. RSI diving back under 70 confirms upward momentum weakening and a correction deepening. Next potential support near 25,500.
North American and European Indices
US 30 has paused between 21,140 and 21,300 recently trading near 21,210. So far this appears to be a pause within an ongoing uptrend with RSI flattening out between 60 and 70.
US SPX 500 appears to be rolling over, falling back under 2,430 after a failed attempt to break out over 2,438 last week. RSI rollover indicates upward momentum slowing and a downturn possible. Next potential support near 2,417 a 23% retracement of the recent advance.
US NDAQ 100 is continuing the big breakdown that started last Friday. The index is trading below Friday’s close near 5,744, having broken 5,691 a Fibonacci level on its way toward 5,680. RSI breaking under 50 confirms a downturn with next support near 5,625 a Fibonacci level and the 50-day average.
UK 100 is handing around 7,500 trading between 7,470 and 7,520. It held 50 on the RSI to keep its underlying uptrend intact but needs to retake 7,545 to call off the right shoulder off a head and shoulders top.
Germany 30 has dropped back into the middle of a 12,475 to 12,900 trading range, trading near 12,680. The index increasingly looks like it has formed a bearish double top. RSI drifting toward 50 indicates upward momentum slowing and a downturn pending. Next potential support near 12,670 then 12,560.
Gold has stabilized near $1,266 above its 50-day average near $1,260 while RSI holding 50 keeps its underlying uptrend intact. Additional support possible near $1,256 a Fibonacci level, with initial resistance near $1,270.
WTI crude oil is picking up off of $45.00 a higher low at round number support. The price has bounced up toward $46.15 while the RSI suggests the latest downswing may be ending. Next bounce resistance tests appear near $47.00 and $47.80.
US Dollar Index is still trading just above 97.00 in a 96.45 to 97.65 range. It remains to be seen if this is a base forming or a pause within a bigger downtrend, but we could get a better idea after the Fed meets this week.
EURUSD is holding just above $1.1200 but is still struggling with $1.1290 resistance and with the RSI rolling over to show upward momentum slowing, looks vulnerable to a correction. Initial support possible near $1.1160 then $1.1120 a 23% Fibonacci retracement of the recent upleg.
GBPUSD remains under pressure, continuing on from Friday’s breakdown. $1.2790 a Fibonacci level, the 50-day average and the broken neckline of a head and shoulders top, has emerged as resistance with the pair falling through $1.2710 and on toward $1.2645. Next potential support appears near $1.2635 then the 200-day average near $1.2565.
NZDUSD has paused near $0.7200 to digest an overbought RSI and consolidate recent gains. It remains in an uptrend above $0.7160 with additional support at the 200-day average near $0.7100. Next resistance on trend possible at prior highs near $0.7250.
AUDUSD remains under accumulation, continuing to attract support above $0.7500 and 50 on the RSI. Recently trading near $0.7535 a Fibonacci level, and the 200-day average, next resistance appears near $0.7590.
USDSGD continues to form a saucer bottom between $1.3780 and $1.3860. RSI climbing toward 50 indicates downward pressure easing. Next potential resistance near in the $1.3930 to $1.3950 area near the 50-day average and a Fibonacci level.
USDJPY ran into resistance at a lower high, Fibonacci level and its 200-day average all near 110.60 and has dropped back under 110.00 to confirm its downtrend remains intact. RSI falling away confirms increasing distribution with next potential support near 109.00 then 108.10.
GBPJPY is breaking down again, falling from 140.40 a Fibonacci level down through 140.00 and on toward a test of its 200-day average near 138.90. Next potential support near 138.00 then 137.50. Falling RSI confirms increasing downward momentum.
EURJPY remains under distribution. A bearish descending triangle continues to form above 122.50 with resistance falling toward 123.70. RSI breaking down below 50 confirms momentum turning downward.
USDCAD is breaking down today, taking out and uptrend support line near $1.3440 then $1.3400 on its way down toward its 200-day average near $1.3330. RSI falling away from 50 confirms increasing downward pressure. Next potential support near $1.3310 then $1.3260. Note CAD USD has rallied to test $0.7500.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.